With general elections due next year, the bad bank idea looks like a politically expedient proposal of dubious economic merit.
Bad ideas keep returning to...
With 40% of banks assets, or 32.4% of GDP, riding on this instrument alone, the debate about priority sector lending is not new. There is a new-found urgency to make it fit-for-purpose.
There were plenty of systems in place to prevent the Punjab National Bank-Nirav Modi case, but they failed. A blockchain-based system might have been more effective at preventing it.
While bond yields tend to fall amid low inflation & interest rate cuts, market experts say they’ve been rising due to concerns over tax collections, fiscal deficit & potential impact of US tariffs.
A panel of experts moderated by ThePrint’s Editor-in-Chief Shekhar Gupta drew connections between insights of 1965 Indo-Pak War and strategic takeaways highlighted by Op Sindoor.
In its toughest time in decades because of floods, Punjab would’ve expected PM Modi to visit. If he has the time for a Bihar tour, why not a short visit to next-door Punjab?
I wish the author studies a little more about Larry Summers since he is relying on that author’s paper alone to argue his point. Larry Summers was in many ways responsible for the 2008 financial crisis. If the author wishes, he can watch the award winning documentary “INSIDE JOB” about the role that Larry Summers played. Larry Summers did not even follow the basic ethical tennets that is followed in all fields of scientific publications i.e declaring conflict of interest.
I wish this kind of articles wouldn’t get written, and in any case not put up on a responsible platform like THE PRINT. When a Lemmon is fresh and full of juice, and someone wants to squeeze a few drops out of it, then it’s one thing. But if the lemmon is ALREADY three fourth squeezed out, and STILL someone wants to squeeze it further, then the lemmon is threatened to become a JUNK LEMMON!
You know what I mean. The economy is already in a precarious condition. The foreign reserves have come down from 421 billions to 380 billions and yet the rupee slide hasn’t been arrested. From 67 it has marched to 74. The Modi government wants to put its hand into the RBI kitty which the governor is saying is already depleted. That is, from the monies that were there by old calculations. Banks are in no position to return to their old riches because of NPAs. If at all any bad loan is getting resolved, then it’s at a 50-60% haircut, which means more than half the money in that particular case gone down the drain. Now government wants the RBI to make good those losses, which run into lakhs of crores.
Why doesn’t the government take the bold decision to provide STIMULUS to the economy in the shape of ADDITIONAL printing of money which the USA and other economies did post-2008, rather than hassling the RBI every other day? Now Mr Modi has started this scheme of doling out one crore in one hour. I hope he will be able to ensure that this won’t prove to be a new chest of NPAs.
I wish the author studies a little more about Larry Summers since he is relying on that author’s paper alone to argue his point. Larry Summers was in many ways responsible for the 2008 financial crisis. If the author wishes, he can watch the award winning documentary “INSIDE JOB” about the role that Larry Summers played. Larry Summers did not even follow the basic ethical tennets that is followed in all fields of scientific publications i.e declaring conflict of interest.
I wish this kind of articles wouldn’t get written, and in any case not put up on a responsible platform like THE PRINT. When a Lemmon is fresh and full of juice, and someone wants to squeeze a few drops out of it, then it’s one thing. But if the lemmon is ALREADY three fourth squeezed out, and STILL someone wants to squeeze it further, then the lemmon is threatened to become a JUNK LEMMON!
You know what I mean. The economy is already in a precarious condition. The foreign reserves have come down from 421 billions to 380 billions and yet the rupee slide hasn’t been arrested. From 67 it has marched to 74. The Modi government wants to put its hand into the RBI kitty which the governor is saying is already depleted. That is, from the monies that were there by old calculations. Banks are in no position to return to their old riches because of NPAs. If at all any bad loan is getting resolved, then it’s at a 50-60% haircut, which means more than half the money in that particular case gone down the drain. Now government wants the RBI to make good those losses, which run into lakhs of crores.
Why doesn’t the government take the bold decision to provide STIMULUS to the economy in the shape of ADDITIONAL printing of money which the USA and other economies did post-2008, rather than hassling the RBI every other day? Now Mr Modi has started this scheme of doling out one crore in one hour. I hope he will be able to ensure that this won’t prove to be a new chest of NPAs.